The Constitution of the United States of America: Analysis and Interpretation Part 225

Act of February 24, 1919 (40 Stat. 1075, secs. 230 and 1088, sec. 301).

Income and excess-profits taxes on income of "every corporation," as applied to income of an oil corporation from leases of land granted by the United States to a State, for the support of common schools, etc., _held_ an interference with State governmental functions. (_See_ Tenth Amendment.)

Burnet _v._ Coronado Oil & Gas Co., 285 U.S. 393 (April 11, 1932).

47. Same (40 Stat. 316, sec. 600 (f)).

The tax "upon all tennis rackets, golf clubs, baseball bats * * * b.a.l.l.s of all kinds, including baseb.a.l.l.s * * * sold by the manufacturer, producer, or importer * * *" as applied to articles sold by a manufacturer to a commission merchant for exportation, _held_ a tax on exports within the prohibition of article I, section 9.

Spalding & Bros. _v._ Edwards, 262 U.S. 66 (April 23, 1923).

48. Act of October 6, 1917 (40 Stat. 395, ch. 97, in part).

The amendment of sections 24 and 256 of the Judicial Code (which prescribe the jurisdiction of district courts) "saving * * * to claimants the rights and remedies under the workmen's compensation law of any State," _held_ an attempt to transfer legislative power to the States--the Const.i.tution, by article III, section 2, and article I, section 8, having adopted rules of general maritime law.

Knickerbocker Ice Co. _v._ Stewart, 253 U.S. 149 (May 17, 1920).

49. Act of September 19, 1918 (40 Stat. 960, ch. 174).

Specifically, that part of the Minimum Wage Law of the District of Columbia which authorized the Wage Board "to ascertain and declare * * *

(a) Standards of minimum wages for women in any occupation within the District of Columbia, and what wages are inadequate to supply the necessary cost of living to any such women workers to maintain them in good health and to protect their morals * * *," _held_ to interfere with freedom of contract under the Fifth Amendment.

Adkins et al. _v._ Children's Hospital and Adkins et al. _v._ Lyons, 261 U.S. 525 (April 9, 1923)--overruled in West Coast Hotel Co. _v._ Parrish, 300 U.S. 379 (March 29, 1937).

50. Act of February 24, 1919 (40 Stat. 1065, ch. 18, sec. 213, in part).

That part of section 213 of the Revenue Act of 1918 which provided that "* * * for the purposes of this t.i.tle * * * the term 'gross income'

* * * includes gains, profits, and income derived from salaries, wages, or compensation for personal service (including in the case of * * *

judges of the Supreme and inferior courts of the United States * * * the compensation received as such) * * *" as applied to a judge in office when the act was pa.s.sed, _held_ a violation of the guaranty of judges'

salaries, in article III, section 1.

Evans _v._ Gore, 253 U.S. 245 (June 1, 1920).

Miles _v._ Graham (268 U.S. 501, June 1, 1925), held it invalid as applied to a judge taking office subsequent to the date of the act.

51. Act of February 24, 1919 (40 Stat. 1097, sec. 402 (c)).

That part of the estate tax providing that "gross estate" of a decedent should include value of all property "to the extent of any interest therein of which the decedent has at any time made a transfer or with respect to which he had at any time created a trust, in contemplation of or intended to take effect in possession or enjoyment at or after his death (whether such transfer or trust is made or created before or after the pa.s.sage of this act), except in case of a _bona fide_ sale * * *" as applied to a transfer of property made prior to the act and intended to take effect "in possession or enjoyment" at death of grantor, but not in fact testamentary or designed to evade taxation, _held_ confiscatory, contrary to Fifth Amendment.

Nichols, Collector _v._ Coolidge et al., Executors, 274 U.S.

531 (May 31, 1927).

52. Act of February 24, 1919, t.i.tle XII (40 Stat. 1138, entire t.i.tle).

The Child Labor Tax Act, providing that "every person * * * operating * * * any * * * factory [etc.] * * * in which children under the age of 14 years have been employed or permitted to work * * * shall pay * * *

in addition to all other taxes imposed by law, an excise tax equivalent to 10 percent of the entire net profits received * * * for such year from the sale * * * of the product of such * * * factory * * *," _held_ beyond the taxing power under article I, section 8, clause 1, and an infringement of State authority.

Bailey _v._ Drexel Furniture Co. (Child Labor Tax Case), 259 U.S. 20 (May 15, 1922).

53. Act of October 22, 1919 (41 Stat. 298, sec. 2), amending act of August 10, 1917 (40 Stat. 277, sec. 4).

Section 4 of the Lever Act, providing in part "that it is hereby made unlawful for any person willfully * * * to make any unjust or unreasonable rate or charge in handling or dealing in or with any necessaries * * *" and fixing a penalty, _held_ invalid to support an indictment for charging an unreasonable price on sale--as not setting up an ascertainable standard of guilt within the requirement of the Sixth Amendment.

United States _v._ Cohen Grocery Co., 255 U.S. 81 (February 28, 1921).

54. Same.

That provision of section 4 making it unlawful "to conspire, combine, agree, or arrange with any other person to * * * exact excessive prices for any necessaries" and fixing a penalty, _held_ invalid to support an indictment, on the reasoning of the Cohen case.

Weeds, Inc., _v._ United States, 255 U.S. 109 (February 28, 1921)

55. Act of August 24, 1921 (42 Stat. 187, ch. 86, Future Trading Act).

(_a_) Section 4 (and interwoven regulations) providing a "tax of 20 cents a bushel on every bushel involved therein, upon each contract of sale of grain for future delivery, except * * * where such contracts are made by or through a member of a board of trade which has been designated by the Secretary of Agriculture as a 'contract market' * * *,"

_held_ not within the taxing power under article I, section 8.

Hill _v._ Wallace, 259 U.S. 44 (May 15, 1922).

(_b_) Section 3, providing "That in addition to the taxes now imposed by law there is hereby levied a tax amounting to 20 cents per bushel on each bushel involved therein, whether the actual commodity is intended to be delivered or only nominally referred to, upon each * * * option for a contract either of purchase or sale of grain * * *", _held_ invalid on the same reasoning.

Trusler _v._ Crooks, 269 U.S. 475 (Jan. 11, 1926).

56. Act of November 23, 1921 (42 Stat. 261, sec. 245, part).

Provision of Revenue Act of 1921 abating the deduction (4 percent of mean reserves) allowed from taxable income of life-insurance companies in general by the amount of interest on their tax-exempts, and so according no relative advantage to the owners of the tax-exempt securities, _held_ to destroy a guaranteed exemption. (_See_ Fifth Amendment.)

National Life Insurance Co. _v._ United States, 277 U.S. 508 (June 4, 1928).

57. Act of June 10, 1922 (42 Stat. 634, ch. 216).

A second attempt to amend sections 24 and 256 of the Judicial Code, relating to jurisdiction of district courts, by saving "to claimants for compensation for injuries to or death of persons other than the master or members of the crew of a vessel, their rights and remedies under the workmen's compensation law of any State * * *" _held_ invalid on authority of Knickerbocker Ice Co. _v._ Stewart.

Industrial Accident Commission of California _v._ Rolph et al., and Washington _v._ Dawson & Co., 264 U.S. 219 (February 25, 1924).

58. Act of June 2, 1924 (43 Stat. 313).

The gift tax provisions of the Revenue Act of 1924, _held_ invalid under the Fifth Amendment as applied to _bona fide_ gifts made before pa.s.sage of the act.

Untermeyer _v._ Anderson, 276 U.S. 440 (April 9, 1928).

59. Revenue Act of June 2, 1924 (43 Stat. 322, sec. 600, in part).

Excise tax on certain articles "sold or leased by the manufacturer", measured by sale price [specifically, "(2) * * * motorcycles * * * 5 per centum"]--as applied to sale of motorcycle to a munic.i.p.ality for police use, _held_ an infringement of State immunity under the principle of Collector _v._ Day.

Indian Motorcycle Co. _v._ United States, 283 U.S. 570 (May 25, 1931).

60. Act of February 26, 1926 (44 Stat. 9, ch. 27, in part).